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A law blog by Robert Lombardo on The Whole 9

Attorney Robert Lombardo came from the creative world and then began practicing law in 1995. The diversity of his professional life (years of which were spent in Europe, Australia and Japan) gives him a unique perspective on the law. Currently Robert is focusing on entertainment law (which encompasses nearly all creative industries) and brings this firsthand experience and desire to make the law accessible to the The Whole 9 community.

Daily Service?

Lauren recently quit her boring-dead-end-job in the city and, although she had no experience in the hospitality industry, bought a large Colonial house near the ocean and converted it into a Bed & Breakfast (“B&B”).

Subsequently, Lauren signed a one-year agreement with Laundry Company to provide “daily service at $750 a week.”  However, after Laundry Company did not pick up B&B’s laundry on the first two Sundays and after it indicated that it would never do so, Lauren canceled the agreement.

Laundry Company sued Lauren for breach of contract.

Lauren claims that during negotiations with Laundry Company, she told them that she needed and expected laundry service seven days a week.

At the trial, however, uncontroverted evidence was introduced to show that in the commercial laundry business, “daily service” did not include service on Sundays.

You are the judge.  Will Lauren or Laundry Company prevail?  Why?

 

Answer below in comments later today.

  1. Courts will often find that there was no contract or agreement when the two parties attach a significantly different meaning to the same material term – in this case the material term is “daily service.”

    Lauren took “daily service” to mean “service every day.” Laundry Company used “daily service” as it is used in the commercial laundry business – “every day but Sunday.”

    However, that does NOT apply in this case.

    Courts will also often find that trade usages control the interpretation of terms in a contract or agreement.

    However, because the Laundry Company knew that Lauren was not aware of the trade usage, it does NOT control in this case either.

    Law: When parties attach significantly different meanings to the same material term, the meaning that controls is that attached by one of them, if at the time the agreement was made: that party did not know of any different meaning attached by the other party; and, the other party knew the meaning attached by the first party.”

    In other words:
    Lauren only knew “daily service” to mean “every day” and she did not know that the Laundry Company attached a different meaning to “daily service”; and,
    Laundry Company knew Lauren thought she was contracting for “service every day.”

    Therefore, the court will find “daily service” to mean “every day” and Lauren prevails.

    She may now demand that Laundry Company provide service every day for $750 per week – or not.

  2. I have learned the hard way that ignorance does not a lawsuit win. If the term daily service means 6 days a week in the commercial laundry business and if the agreement that was signed stipulates daily service and not 7 days a week service, then my guess (based on my own bad experience) is that Laundry Company will prevail.

  3. Sounds like there could have been fine print Lauren missed. I’m interested to see how this played out and why.

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